Abstract

https://ssrn.com/abstract=2705556
 


 



Impact Investing


Brad M. Barber


University of California, Davis

Adair Morse


University of California, Berkeley - Haas School of Business; National Bureau of Economic Research (NBER)

Ayako Yasuda


University of California, Davis - Graduate School of Management

January 17, 2017


Abstract:     
We study investments in impact funds, defined as venture capital or growth equity funds with dual objectives of generating financial returns and positive externalities. Being an impact fund elevates a fund’s marginal investment rate by 14.1% relative to a traditional VC fund, even more for funds focused on environmental, poverty, and minority/women issues. Europeans and UNPRI signatories have sharply higher demand for impact. Three investor attributes – household-backed capital, mission-oriented investors, and investors facing political/regulatory pressure to invest in impact – account for the higher impact demand. In contrast, legal restrictions against impact (e.g., ERISA) hinder 25% of total demand.

Number of Pages in PDF File: 57

Keywords: Venture Capital, private equity, impact investment, socially responsible investment, UN principles of responsible investment, sustainable investing, corporate social responsibility.

JEL Classification: G1, G2


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Date posted: December 20, 2015 ; Last revised: January 25, 2017

Suggested Citation

Barber, Brad M. and Morse, Adair and Yasuda, Ayako, Impact Investing (January 17, 2017). Available at SSRN: https://ssrn.com/abstract=2705556

Contact Information

Brad M. Barber
University of California, Davis ( email )
Graduate School of Management
One Shields Avenue
Davis, CA 95616
United States
530-752-0512 (Phone)
530-752-2924 (Fax)

Adair Morse
University of California, Berkeley - Haas School of Business ( email )
545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Ayako Yasuda (Contact Author)
University of California, Davis - Graduate School of Management ( email )
One Shields Avenue
Davis, CA 95616
United States
530-752-0775 (Phone)
530-752-2924 (Fax)
HOME PAGE: http://www.ayakoyasuda.com

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